Pursue Development Through

Greater Understanding and Cooperation

Speech by H.E. Yang Jiechi, Minister of Foreign Affairs

At the 11th Annual Meeting of the China Development Forum

Beijing, 21 March 2010

Distinguished Guests,

Ladies and Gentlemen,

Dear Friends,

It is a distinct pleasure for me to join you here at the 2010 annual meeting of the China Development Forum and talk about China's foreign policy. Today happens to be the Spring Equinox, one of the 24 seasonal division points under the traditional Chinese calendar. We Chinese say, "Every minute is as precious as gold on the Spring Equinox, for this is the day when wheat starts to grow." And we are indeed at a critical moment. We have seen green shoots in the world economy, but the recovery is yet to firm up. A forum with the theme of "China and the World Economy: Growth, Restructuring and Cooperation" at such a point in time cannot be more fitting. I see in the audience well-known businessmen and scholars from both home and abroad. Your insight and wisdom will inspire us in our effort to counter the financial crisis and challenges in the post-crisis era. I wish the forum a great success.

Ladies and Gentlemen,

This year kicks off the second decade in the new century. The 10 years that has just passed is a decade of crisis and transformation, and of cooperation and development. The process towards a multi-polar world and economic globalization has unfolded at a faster pace. The concept of multilateralism and win-win progress has won greater popularity. And the trend of our times - peace, development and cooperation - has gained stronger momentum. A host of major events, including the September 11 terrorist attacks in the United States, the war in Iraq, the international financial crisis, and the rise of the overall strength of developing countries have hastened the arrival of a new era in the evolution of the global landscape. It is an era marked by economic fluctuations, institutional overhaul, structural adjustments and above all, greater cooperation among countries. There have occurred several new features and trends.

First, a new, major transformation in the global economic growth pattern is in the making amidst the continuing impact of the international financial crisis. The world economy, once plunged into deep recession in the wake of the financial crisis, is now stabilizing and picking up. But deep-seated problems have not been fundamentally addressed. The financial crisis has accelerated the transformation of the economic growth pattern and brought new opportunities and growth points to the world economy. All countries are busy adjusting their strategies on economic growth and overall development in order to gain an advantageous position in the competition of comprehensive national strength in the post-crisis era.

Second, the global economic system has entered an important stage of reform and development, and there is a stronger call for a more just and reasonable international order. The financial crisis has laid bare the flaws in the current international economic and financial system, and the need for reform is widely acknowledged. As a result, the G20 summits have become institutionalized. The International Monetary Fund, the World Bank and other international institutions have taken significant steps towards reform. And the global economic governance structure is moving towards greater representation, justice and efficiency. But reform of the international economic system will be a long and tortuous process, as it involves extremely complex factors.

Third, the global balance of power has gone through new changes, and the collective strength of developing countries continues to rise. Major developing countries are becoming important engines of the global economy. This will help bring about balanced development of the global architecture. But on the other hand, developing countries still fall behind developed countries in terms of economic and social development. They have to work long and hard to meet the target of economic growth and poverty eradication.

Fourth, a new round of adjustments and interactions has begun in international relations, and international cooperation on global issues keeps deepening. Climate change, energy and resources security, food security, public health security and other global issues have become more acute, and no country can deal with these problems alone. More and more countries have come to realize that the Cold War mentality and zero-sum game theory are out of date. The right way to survive and thrive is to stick together in tough times like passengers in the same boat and pursue mutual benefit and win-win progress. It is widely agreed that in handling international relations, countries should seek cooperation in the course of competition, and promote development through cooperation.

Ladies and Gentlemen,

In the first ten years of this century, China has traveled an extraordinary path. We have successfully held the Beijing Olympic Games, effectively dealt with the international financial crisis, and played an important role in tackling climate change and other global challenges. We have deepened friendly cooperation with all countries, promoted the peaceful settlement of international disputes and regional hot-spot issues, and worked for a more just and reasonable international order. All this demonstrates China's image as a responsible country and underscores our unique and constructive role in international affairs. It shows that China is a staunch force for world peace and common development.

China's development has brought benefits to the world. Statistics show that in 2009, China contributed 50% to world economic growth and became the second largest importing country and the largest emerging market. We have taken an active part in international cooperation on the financial crisis and played an important role in promoting stability and development of the regional and global economy. In the height of the financial crisis, we kept the RMB exchange rate basically stable, facilitated the establishment of the Asian foreign exchange reserve pool totaling 120 billion US dollars, and signed currency swap agreements worth 650 billion RMB yuan. We have adopted a series of major steps to meet the climate challenge, made great effort for positive and important outcomes at the Copenhagen conference and active contributed to international cooperation on climate change.

China is assuming increasing international responsibilities commensurate with its capability. We have fulfilled our commitments under the UN Millennium Declaration, provided economic assistance to more than 120 developing countries, and cancelled the debts owed by 49 heavily indebted poor countries and least developed countries. We have given assistance, both in kind and in cash, to countries hit by earthquakes, tsunamis and other natural disasters, and sent out medical and rescue teams for humanitarian relief on many occasions. We are an active participant in UN peacekeeping operations and we are the largest contributor of peacekeeping personnel among the five permanent members of the UN Security Council. So far we have dispatched more than 10,000 personnel to 24 UN peacekeeping missions, and some Chinese peacekeepers have made the ultimate sacrifice. All these are vivid examples which show that while promoting our own development, we are doing our utmost to contribute to the lofty cause of world peace and development.

On the other hand, one must always remember China's basic national conditions and the difficulties we face. China has a large population. Our economic foundation is weak and our development is uneven. China's per capita GDP is lower than that of at least 100 countries. Yes, in the past 30 years the number of Chinese lifted out of poverty almost equals the total population of the US, but we still have the second largest number of poor people in the world. Our consumer spending is still at a fairly low level. There are 10 million Chinese who have no access to electricity even today. China is at the lower end of the global industrial chain and lacks competitiveness in scientific research and development and high-end manufacturing. We need to export hundreds of millions of shirts in order to buy one Airbus or Boeing. The difficulties that we face in our development are unmatched anywhere in the world, and none of the difficult issues has easy solutions. We are and will remain a developing country for a long time to come. To achieve modernization in China, we must make strenuous and unremitting efforts.

It is the bounden duty of Chinese diplomacy to safeguard China's sovereignty, security and development interests and promote world peace and development. On issues concerning core national interests, we have always been steadfast and unyielding, even when we were very poor and backward. It is also important to note that China has always been committed to peaceful development and win-win cooperation. First, China's development has been made possible by our dedicated efforts on the economic and social fronts, not by armed expansion abroad. We don't pursue development at the expense of others or seek to maximize our own gains in developing external relations. Quite the contrary, we have been working to broaden shared interests and combine our interests with the common interests of the people of the whole world in order to achieve common development. Second, China's development is the result of reform, opening up and cooperation with others. By pursuing mutual benefit, we have both achieved rapid development at home and contributed to the growth of the world economy. Third, our development has benefited from a generally peaceful and stable international environment, and our development has in turn contributed to world peace and prosperity. Mutual respect, equality, seeking common ground while reserving differences, openness and inclusiveness - these are the principles underpinning China's development. I want to stress that even when we become developed in the future, we will never impose our will on others. To sum up, China's development, instead of hurting the interests of any country, will only bring more opportunities and make greater contribution to the whole world.

Ladies and Gentlemen,

The year 2010 will continue to see profound and complex changes in the international landscape, including the global economic architecture. It will also be a crucial year to China's efforts to counter the global financial crisis, maintain steady and fast economic growth, and speed up the transformation of economic growth pattern. In his government work report, Premier Wen Jiabao laid out our basic foreign policy objectives and essential tasks for this year. In keeping with the central tasks of the Party and the state, we will further reach out to the world and firmly uphold sovereignty, security and development interests. Priorities on our diplomatic agenda for this year include the following:

First, vigorously pursue all-round diplomacy. To enrich and improve all-round diplomacy, we will further develop our relations with major countries, strengthen good-neighborliness with surrounding countries, and enhance solidarity and cooperation with developing countries. We will pursue bilateral and multilateral diplomacy, and country and region-specific diplomacy and subject-specific diplomacy in a coordinated way.

Second, build a better external environment to serve our domestic effort of maintaining stability, promoting development and speeding up transformation of economic growth pattern. We will step up economic diplomacy and support the "bring in" and "go global" strategies. We will continue to engage in international dialogue and cooperation to tackle the financial crisis and firmly oppose protectionism. We are ready to work with all other countries to put the world economy back on track.

Third, ensure success of summit diplomacy and World Expo diplomacy. As you may know, there will be quite a number of multilateral summit meetings this year. Chinese leaders will attend the G20 summits, the SCO summit, the "BRIC" summit, the APEC economic leaders' meeting, the 3rd world conference of speakers of parliaments, the East Asia leaders' meetings, and some other important multilateral events. We will continue to take multilateral summit meetings as an important platform to actively engage in the reform of the international system, uphold the interests of developing countries and drive forward international cooperation in addressing climate change and other issues.

The Shanghai World Expo will be another grand international event hosted by China following the Beijing Olympic Games, and it will be the first time that the Expo is held in a developing country. Around 100 foreign dignitaries are expected to come to Shanghai for the event, along with a large number of visitors from various parts of the world. The World Expo belongs not only to Shanghai and China, but also and more importantly, to the entire world. It will offer an important stage for people around the world to showcase their achievements, enhance mutual understanding and friendship and promote common development. We will marshal the full resources of the country and pool the wisdom of the whole world to make the Expo a bridge of friendship and exchanges among people across the globe.

Ladies and Gentlemen,

There is an old Chinese saying which goes, "There are other hills whose stones may serve to polish jade". It means that advice from others may help one overcome one's own difficulties. At this critical juncture when all countries are rethinking what development concept to follow, and when all of us are coming together to meet global challenges, it is all the more important for us to be open and inclusive and learn from each other. The China Development Forum is designed to "hear the voice of the world and explore the path for China's development". I am convinced that, with this purpose in mind, the forum will play an active and unique role in enhancing China's dialogue, understanding and friendship with the rest of the world. Together, let us contribute our wisdom and strength to international cooperation and to the lofty cause of world peace and development.

Thank you.